◼ Chief Executive Officer Michael Corbat, who took over the bank in October, is cutting more than 11,000 jobs, scaling back operations in some emerging markets and taking a $1 billion charge this quarter in an effort to drive down costs. - Donal Griffin/BLOOMBERG
...Citigroup also plans to shrink that division’s bonuses for this year by as much as 10 percent, two people with direct knowledge of the decisions said last week.
Cost-cutting by investment banks needs to be severe to deal with the impact of the new capital rules, Sanford C. Bernstein analysts said last month. Firms must slash pay and headcount and get rid of almost a third of their trading-business assets to earn even half the returns they once made, while replacing some traders with computers, the analysts wrote.
